Chapter 2 Economic Resources and Systems by yurtgc548

VIEWS: 7 PAGES: 8

									      Chapter 2
Economic Resources and
       Systems
         Section 2.1
     Economic Resources
     Making Economic Decisions
   Resources are used to make goods and
    services.
   Scarcity: lack of resources
   Principle of scarcity
       There are limited resources for satisfying
        unlimited wants and needs
   Because resources are limited, to have
    one thing may result in giving another
    thing up.
           Factors of Production
   Factors of Production: all the economic
    resources necessary to produce a society’s
    goods and services
       Natural resources
       Labor resources
       Capital resources
       Entrepreneurial resources
               Natural Resources
   Natural resources: materials from nature that
    are used to produce goods.
       Trees, water, oil.
   Natural resources are usually processed in
    various ways to make products.
   Many economies are based on the country’s
    natural resources.
   Some natural resources are renewable like cows
    and wheat.
   Some natural resources are nonrenewable or
    limited like coal and crude oil.
                 Labor Resources
   Labor resources: the people who make the
    goods and services for which they are paid.
       Skilled or unskilled, physical or intellectual.
   Which is physical and which is intellectual?
       Teacher
       Carpenter
       Truck Driver
       Lawyer
       Accountant
              Capital Resources
   Capital resources: the things used to
    produce goods and services, such as
    buildings, materials, and equipment.
       Farmer - Tractor
       Accountant – Computer
       Corporation – Office Building
        Entrepreneurial Resources
   Entrepreneurial Resources: used by the people who
    recognize opportunities and start businesses.
   Entrepreneurship: the process of recognizing a business
    opportunity, testing it in the market, and gathering
    resources necessary to start and run a business.
   Entrepreneur: an individual who undertakes the creation,
    organization, and ownership of a business.
       He or she understands the risk of business ownership and seeks
        to gain profit and wealth from it.
   Difference between Labor resources and Entrepreneurial
    resources:
       Labor: people who produce the goods
       Entrepreneurial: individual who start and direct a business to
        produce goods and services
                Homework
   Complete Ch. 2 Definitions-Packet (Unit 1
    Vocabulary Folder)
   Complete Chapter 2-1 Reading Activity
    and 2-1 Graphic Organizer (Unit 1 Reading
    Activities Folder)
   Review questions on page 26, #’s 1-3

								
To top